The Mogo Blog

Tax Terms You Need To Know

As tax season intensifies (this is the only verb that accurately describes the ramp up to filing day), it’s important to make sure you’ve got your basic tax vocabulary on lock for one simple reason: making the process less painful for you. Whether you’re filing taxes for the first time, or you’re new to Canada, or you’ve never filed on your own before, it’s frustrating to pause every few minutes to Google a specific term. With any luck, we can take some of that pressure off here, with a crash course in some basic tax terminology. Your Tax DictionaryWhat is a T4?A T4 is the slip that employers use to report the income of employees. Whether you are employed full time, part time, or on contract, your company will issue a T4 for you every year. Normally, you’ll receive this document by mail. T4s, like most tax documents, come with many numbered “lines” that are used to code and record amounts of money. When doing your taxes, all you need to do is match the number affiliated with each line and fill in the corresponding amount. For example, line 23600 reports net

50/30/20: Budgeting for people who think budgeting sucks

Budgeting is hard, and we are the first to admit that managing money presents a unique challenge. Managing the numbers is (relatively) easy, but managing our very human wants, needs, and goals can be really hard, and balancing the lot can feel impossible. This is why rigid, granular budgets don’t really work for us. If we overspend on wine (let’s be real lmao), we don’t want to feel like trash, we just want a plan to move forward, better. Thankfully, our better budget is a simple one. Meet the 50/30/20 Rule. Budgeting, But Make It Not ScaryMost often, folks gravitate towards granular budgets which make use of specific values. This month, for example, one might spend $104.68 on one’s phone bill, $1,500 on rent, and $20 on wine (all of these figures are absurd for different reasons). But, when—not if—you overspend on something, the budget breaks. Your spreadsheet starts flashing red and your laptop threatens to self-destruct like in those Tom Cruise movies he’s still making for some reason. You went over budget! You are garbage and not an adult! You have no self control! But none of that